Stress – is a state of mental and emotional pressure
cause by challenging situation.
Stressor – cause/reason of stress.
1.) EXTERNAL STRESSOR – Environment
Ex: traffic, noise, deadlines, standards, boss, co-
workers, competitors, failures.
2.) INTERNAL STRESSOR – personal factors
Ex: Illness, hormonal imbalance, etc.
 CORTISOL – Stress hormone
EFFECTS OF STRESS
 It reduces productivity
 Loss interest
 Unable to concentrate
 Fatigue
 Insomnia/ hypersomnia
 Decreases digestive activity
EUSTRESS – good stress
DISTRESS – demotivator
STRESS REDUCTION METHOD
 Identify the stressor
 Change your perspective ; adjust
 Seek for support system
 Go into relaxing activity/ places
 Eat properly
 Divine Intervention
BUSINESS LAWS
LAW - set of rules
BUSINESS LAW – set of rules that govern businesses in
the Philippines; macro level.
GOVERNMENT AGENCIES – the one who mandates
business laws.
 DTI – Sole proprietorship
 SEC – Partnership/ Corporation
 BIR – Assessment and collect national taxes and
fees.
 SSS
 Home Development Mutual Fund
 Philippine Health Insurance Corporation
 DOLE – Protects the right of employment
 Cooperative Development Authority
SCOPE OF BUSINESS LAWS
1.) Registration
2.) Operation –Regulation
3.) Termination
PURPOSES WHY DO WE NEED BUSINESS LAWS
1.) Organization - to systematize
2.) Protection
3.) Privilege
BUSINESS LAWS
RA 8424 –TAX REFORM ACT – business must pay tax
and also give power to BIR to collect taxes.
PD 442 - LABOR CODE OF THE PHILIPPINES –
governs employment practices labor relation activities.
RA 8293 - INTELLECTUAL PROPERTY ACT –
registration of copyright and trademark; protect
intellectual property of a business.
BP68 – CORPORATION CODE OF THE PHILIPPINES
– registration and regulation of all the corporation in
Ph.
RA 386 – CIVIL LAW - responsible for contract
obligation and arguments.
RA 8282 - SOCIAL SECURITY ACT
RA 7875 - NATIONAL HEALTH INSURANCE ACT
RA 9679 - HDMF LAW
RA 9711 – FOOD AND DRUGS ADMINISTRATION
ACT
RA 8799 - SECURITIES REGULATION ACT
RA 8556 – FINANCING COMPANY ACT
RA 7394 – CONSUMER ACT
RA 8792 – ELECTRONIC COMMERCE ACT
RA 9501 – MAGNA CARTA OF MSME
RA 9520 – PHILIPPINE COOPERATIVE ACT
PHILISOPHICAL FOUNDATION OF CORE PRINCIPLE
1.) PRE –SOCRATIC PHILOSOPHY – all
philosophies before Socrates.
 COSMOLOGY - study of the component
of the universe.
2.) CLASSICAL PHILOSOPHY – Greek and Roman
Philosopher.
 Triumvirate – 3 great philosopher
*Socrates, Plato, Aristotle – Alexander
the Great
 SOCRATES – “Do not go with the flow”; highest
intelligence is logic.
LOGIC - study of learning
“To be morally right, you must be
responsible”
* Accountability, honesty, keeping
promises
 PLATO – “Power to rule”
* Leadership, Obeying the Law
THEORIES OF LEADERSHIP
 TRAIT THEORY – leadership is part of
personality trait.
 BEHAVIORAL THEORY - leadership is a
learned behavior
 SITUATIONAL THEORY – leadership is
based and develop through specific
situation.
- “Power of Communication’’ –
must be responsible to give
 continuous communication to
employee.
 His ideal government is dictatorship
 Leader must identify the strengths and
weaknesses of employees.
 ARISTOTLE – “Keep your people motivated”
* Caring and Fairness
o REINFORECEMENT – benefits, incentives
 POSITIVE –add/give something
positive and favorable.
 NEGATIVE - remove negative or
unfavorable
 PUNISHMENT – add something
negative.
- Reinforcement is unique or may
vary
o HAPPINESS – different determinants of
happiness.
 50% genetics
 10% instances/unexpected
situation (because it is temporary)
 40% intentional activities, do what
makes u happy.
CONSUMER PSYCHOLOGY – the study of why and
how the consumer buy goods and services.
- Science that deals with CPB
FACTORS AFFECTING CPB
EXTERNAL FACTORS- people around you;
environment.
1. DEMOGRAPHIC FACTOR –
consumer’s personal information.
Ex: Age, sex, religion, civil status.
2. ECONOMIC FACTOR - status
Ex: Inflation and Deflation
3. SITUATIONAL FACTOR - based on
diff. situation.
 PURCHASE TASK – events
 SOCIAL SURROUNDING –
tends to buy because of
social companion.
 PHYSICAL SURROUNDING
– environment of stores.
 TEMPORAL ASPECT –
tends to buy in specific day
and time.
 ANTECEDENT –tends to
buy based on moods.
4. SOCIAL FACTOR – how social
affects your CPB.
 SOCIAL INFLUENCE-
factors that bring changes.
Types of Social Influence
a. COMPLIANCE - follow an
authority whether like it or
not.
b. CONFORMITY - want to fit
in
c. OBEDIENCE - follow an
authority voluntarily
d. MINORITY INFLUENCE –
smaller no. of people
influence big no. of people.
e. IDENTIFICATION –
influence by specific person
(can be your idol)
 SOCIAL STATUS - structure
hierarchy based on income.
a. CLASS A - SOCIAL ELITE
– hereditary wealth.
b. CLASS B – UPPER CLASS
– usually receive high
amount
c. CLASS C - MIDDLE CLASS
– receive average income;
blue and white colored job.
d. CLASS D – LOWER CLASS
– minimum wages
 FAMILY STRUCTUREIN
PURCHASING DECISION
a. AUTOMATIC – both
husband and wife decide in
equal number of times.
b. MOTHER DOMINANT –
mother decide
c. FATHER DOMINANT –
father decide
d. SYNCRETIC – equalitarian;
talk.
5. TECHNOLOGICAL FACTOR -
affected by the advancement of
technology.
INTERNAL FACTORS - personal factors (personality,
hobbies, likes and dislikes)
Types of Internal Factors
1. Interest - preferences, likes and dislikes and
hobby
2. Psychological Factors
2.1) Personality- unique and consistent pattern
of behavior, thoughts and feelings; dynamic.
 Consumer’s Personality - No law of conservation (can’t
a. The Negotiator – always look for bargain. understand quantity and value)
b. The Scrooges – chooses cheapest price. c. CONCRETE OPERATIONAL STAGE (7-10)
c. The Quality Nut – quality over price they are not egocentric; has law of
d. The Flaunter – product w/ highest price conservation.
e. The Walking Encyclopedia – research d. FORMAL OPERATIONAL STAGE (11-UP)
before buying solve problem; understand logic and abstract.
f. The Conspiracy Theory – try before 2.4) PERCEPTION – a way of organizing
believing; suspicious information process.
g. The Toddler – asks many questions a. SELECTIVE ATTENTION – we can absorb 105
h. The Yes Customer- can’t disagree. ads only.
- purchased product that attracted them.
i. The Uhmm.. Customer – not sure what to
buy. b. SELECTIVE DISTORTION - though the ads is
helpful they always choose what they believe.
j. The Fast Tense- always in hurry.
c. SELECTIVE RETENTION – buy products that
retain to brain/memory.
2.2) Motivation - Abraham Maslow’s Theory
- needs matures thru time 3. Life Style- the way of living.

PSYCHOLOGICAL PRICING – a certain prices

have a psychological impact.
- Color, font size, positioning
Self-Actualization
NICK KOLENDA – psychology of pricing.

TACTIC 1: REDUCE THE LEFT DIGIT ONE

Self - esteem CHARM PRICING is most effective when left
digit changes by one.
Love and Belongingness EX: 3.80 – 33.79
TACTIC 2: DISPLAYPRICES IN A SMALL FONT
Love and Belongingness
SIZE
Safety Needs - Means small price
Ps. Not product on sale.
TACTIC 3: REMOVE THE COMMA
Physiological Needs EX: 1,200 - 1200
TACTIC 4: BE PRECISE W/ LARGE PRICES
EX: 39,811 – 40, 000 (must be rounded off)
Updated Version: TACTIC 5: POSITION LOW PRICE TOWARD LEFT
1. Transcendence – highest level TACTIC 6: POSITION HIGH PRRICES TOWARD
2. Aesthetic before self-actualization RIGHT
TACTIC 7: SHOW PRICES AT THE OPTIMAL
3. Cognitive
TIME
 BLACK CLOUD – Ambiance
EX: Product – price = luxury product
2.3) LEARNING – Knowledge Price – product = utilitarian product
JEAN PIAGET –Cognitive Development Theory TACTIC 8: DISPLAY RED PRICES TO MEN
Our cognition-intelligence develops thru time. - Men are visual
a. SENSORIMOTOR STAGE (0-2) they learn - Red signifies savings for men
through senses. - Red signifies higher price for
b. PRE-OPERATIONAL STAGE (3-6) they learn women
through language and symbols. - PUCCINELLI, et al.(2013) men
- Egocentric (selfish) likely to buy products if prices
- Presence of animism ( are color red.
everything has soul) TACTIC 9: MENTION THE DAILY EQUIVALENCE
- 1500/month -----50/ day
 TACTIC 10: SORT PRICE FROM HIGH TO LOW
TACTIC 11: POSITION PRICES TO THE RIGHT OF
LARGE QUANTITIES
- 15 items for 10 php

CONSUMER BEHAVIOR
CONSUMER PURCHASING BEHAVIOR – is a
decision process or an act of buying and using a
product.
STAGES
1. PROBLEM/NEED RECOGNITION – Awareness
of needs.
2. INFOSEARCH – Search for alternatives\
 Internal Search – search within self
 External Search – searching from internet/to
others.
3. EVALUTATION OF ALTERNATIVES – least to
best
 Evoked Set – list down alternatives
4. PURCHASING DECISION – deciding for best
5. PURCHASE – actually buying/consume
6. POST-PURCHASE DECISION – evaluation
TYPES OF CPB
1. ROUTINE RESPONSE/PROGRAMMED –
purchase automatically
2. LIMITED DECISION MAKING – purchase goods
because of occasions/purpose
3. EXTREME DECISION MAKING – intensive; you
purchase wants that is unfamiliar/luxury
4. IMPULSIVE BUYING –unplanned buying
THEORIES OF CPB
1. MARSHALLIAN THEORY
- Alfred Marshall
- Buy goods that offers greatest
satisfaction.
2. VEBLENIAN THEORY
- Thorstein Veblen
- Buy goods that offers pleasure
- Happiness
3. IMPULSE BEHAVIOR THEORY
- Hawkins Stern
- Buy goods because of sudden
impulse.
TYPS OF IMPULSE BEHAVIOR
 PURE IMPULSE – unplanned; wants
 SUGGESTIVE IMPULSE – buying things out
of suggestion
 PLANNED IMPULSE- planned; buy because
of promotional offer.